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Bullboard - Stock Discussion Forum Lifeworks Inc Com MSIXF

Morneau Shepell is a human resources company that provides consulting and administrative services in four segments: well-being, administrative outsourcing, consulting, and absence management. The well-being segment, which produces the most revenue, offers educational and counseling services aimed at supporting employee and family needs. The administrative outsourcing and consulting segment... see more

GREY:MSIXF - Post Discussion

Lifeworks Inc Com > BMO comment
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Post by Digby8 on Feb 18, 2021 12:14pm

BMO comment

Initiating at Outperform; Seizing Free Cash Flow

Morneau Shepell offers a long-term mid-single-digit organic growth profile, downside protection in the form of highly recurring revenue streams and upside potential from opportunistic acquisitions.
 
• We anticipate the upcoming year to be rich in financial performance improvements, with rising free
cash flow generation and declining leverage.
• We believe the shares currently provide a compelling entry point with improving free cash flow conversion presenting a valuation re-rating opportunity. We initiate coverage at Outperform with a $37 target price.
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